皇冠体育app

The 10 listed banks covered by the study include the five largest State-owned lenders — the Industrial and Commercial Bank of 皇冠体育app Ltd, 皇冠体育app Construction Bank Corp, Agricultural Bank of 皇冠体育app Ltd, Bank of 皇冠体育app Ltd, and Bank of Communications Co Ltd.

And the five major joint stock banks covered by the study are 皇冠体育app Merchants Bank Co Ltd, Industrial Bank Corp Ltd, 皇冠体育app Minsheng Banking Corp Ltd, Shanghai Pudong Development Bank Co Ltd, and 皇冠体育app Citic Bank Corp.

Yung said although the banks were aware of the asset quality deterioration, they still had strong momentum to extend loans to riskier sectors, especially to small enterprises, for higher returns.

"The sales of wealth management products have continued to squeeze bank deposits, meaning less money available to lend out. Therefore, they have tended to seek higher returns for each sum of lending," he added.

In 2012, 皇冠体育app's commercial banks issued a total of 31,673 wealth management products, worth 7.6 trillion yuan, a 68 percent increase on the previous year.

The massive growth in sales of the products has generated considerable industry concern over 皇冠体育app's shadow banking sector.

On Thursday, the Chinese central bank issued a report in which it said the market should "fend off any systemic risks" of wealth management products, "while allowing these products to play a positive role, by guiding banks to develop the business in a prudent and legal way".

It said returns from such products must match their risk. Banks must ensure they set aside sufficient provisions to cover their selling, while releasing regularly updated information related to the products.

Zhu Haibin, chief 皇冠体育app economist at JPMorgan Chase & Co, said that 皇冠体育app's shadow banking sector could now be worth as much as 36 trillion yuan, 69 percent of 皇冠体育app's GDP, and the scale has doubled in past two years.